Closed loop financial transaction method and apparatus

ABSTRACT

A method and apparatus for closed loop, automatic processing of typical financial transactions, including loans, setting up checking, savings and individual retirement accounts, obtaining cashier&#39;s checks, ordering additional checks, issuing credit and debit cards, wire transferring money, and so on. The transactions are provided from a kiosk and controlled by a computer controller interacting with the consumer. In the case of loans, a computer controller helps the consumer in the completion of the application, performs the underwriting, and transfers funds. The computer controller obtains the information needed to process the application, determines whether to approve the loan, effects electronic fund transfers to the applicant&#39;s deposit account and arranges for automatic withdrawals to repay the loan. The computer controller reviews documentation requirements including consumer lending and other required documentation with the consumer and obtains acknowledgment of acceptance of terms by having the consumer sign an electronic signature pad. Copies of documents with a digital photograph are printed out by a printer in the kiosk for the consumer. Finally, the kiosk has the capability of imprinting a credit or debit card in response to a consumer request.

This is a file wrapper continuation of application Ser. No. 08/327,653filed Oct. 24, 1994, which is a continuation-in-part application ofapplication Ser. No. 08/113,205 filed on Aug. 27, 1993, both nowabandoned.

BACKGROUND OF THE INVENTION

1. Field of the Invention

The present application is a continuation in part of Ser. No. 113,205filed on Aug. 27, 1993.

The present invention relates generally to closed loop financialtransactions. More specifically, the present invention is a method andapparatus for processing financial transactions automatically, includingloans, applications for credit, establishment of accounts and othertransactions that typically take place at banks.

2. Discussion of Background

Currently, consumers go to banks, credit unions and other types offinancial institutions for a wide variety of services. At theseinstitutions, one can deposit and withdraw money, transfer funds fromone account to another, establish checking and savings accounts, arrangefor automatic deposits to and withdrawals from accounts, apply forcredit and debit cards, establish and fund individual retirementaccounts, purchase certificates of deposit and savings bonds, obtaincashier's checks, and order checks for checking accounts. Although thenumbers and types of financial institutions have proliferated, going tothese during normal working hours is still a chore.

For years, night deposit boxes have made it possible for businesses andindividuals to deposit money in a bank after hours. The advent ofautomatic teller machines make some of these financial services,particularly withdrawal of funds from checking accounts and theobtaining of cash advances against a credit card limit, possible bothduring the day and after normal banking hours. Of course, many financialtransactions can still be handled through the mail. Nonetheless, thereremains a significant number of services that can only be provided to aconsumer if he or she is willing and able to go to a financialinstitution to get them.

An example of one such service is borrowing money. Borrowed money isessential to facilitate commerce and personal finance. Individuals andbusinesses borrow money on both a short term and a long term basis forbetter management of their day-to-day financial transactions and toobtain the goods and services they need when they need them. If the needto borrow money is anticipated, the arrangements for borrowing can bemade in advance of the need. But financial needs are sometimes notforeseen, and the extent of a financial need is not always known orknowable in advance. Furthermore, these arrangements are usuallysomewhat of a necessary inconvenience because they take time and effortto complete.

When an individual needs to borrow money, the lender will not onlyexpect repayment, but will also want to have confidence that the amountlent can be repaid on time. The effort by the borrower to provide thelender with this confidence level will depend on the amount lent. Forexample, a loan of less than one hundred dollars might be made simply onthe basis of knowing that the individual to whom the money is lent has ajob. For lending millions of dollars, the lender may want to take asecurity interest in assets that have a value in excess of the amountlent, to cover fluctuations in the values of those assets during thetime the loan is being repaid.

Not only will the borrower have an obligation to convince the lenderthat the borrower is credit worthy, the lender also has obligations tothe borrower. For example, in consumer loans, laws require the lender tocarefully explain certain aspects of the terms of the loan, and, if theborrower's application for the loan is turned down, the reasons why.

When time and foresight permit advance arrangement of loans, the act ofborrowing can be made much simpler. When time is short and the need forthe loan was not anticipated, the act of going through the process ofborrowing may be so time-consuming that obtaining the loan may not bepossible at all.

Typically, a business and an individual will either borrow relativelysmall amounts using credit cards, with pre-approved credit limits or goto a lending institution for larger sums, where the process ofcompleting documentation for borrowing money takes longer and is subjectto conditions that must be fulfilled before the loan can be made.Naturally, for large loans the safeguards for the lender take time. Butfor smaller loans, those above credit-card limits but still below alevel where there might be a significant concern of the ability of thelender to repay the loan, there exists a need for greater convenience.

Other services offered by banks, such as applying for credit cards, aresimilar to borrowing money insofar as applications must be completed andprocessed for approval. Others are essentially administrative, such asopening a checking or savings account, obtaining additional checks andobtaining a debit card. All such services must be obtained by going to abank and completing the necessary documentation, with the attendantinconvenience.

SUMMARY OF THE INVENTION

According to its major aspects and briefly stated, the present inventionis a method and apparatus for closed loop processing of financialtransactions such as, especially, a loan or credit card application,including completion of the application, underwriting, and transferringof funds. The term "closed loop" means that all the steps involved areperformed by a computer that is programmed to make the decision toapprove or disapprove the request and to complete all aspects of it,including complying with regulatory requirements, on behalf of thefinancial institution within minutes of the time the consumer initiatesthe request for the particular service. In loan application processing,for example, the closed loop includes the steps of transferring thefunds to the borrower and arranging for repayment, as well as completingthe loan application and underwriting it, including execution ofregulatory requirements related to consumer financing, all done withouthuman intervention. In the primary examples presented in the presentinvention, for loans and credit cards, the apparatus uses a computercontroller and a telecommunications link, plus other electroniccommunications equipment, to enable the complete, automated processingof the application; namely: (1) the exchange of information with theapplicant, preferably using "touch-screen" or voice recognitiontechnology; (2) the underwriting, which means the evaluation and,importantly, approval of the application, plus, most importantly; (3)immediately transferring electronically the funds from a source of fundsto the deposit account designated by the applicant; (4) completing ofconsumer financing regulatory requirements; and, optionally, (5)automatic withdrawals from the applicant's account to repay the loan.

With respect to financial transactions generally, the present inventionis the closed loop performance of financial functions via a computer andmonitor mounted in a kiosk, located in convenient places and using"touch-screen" or voice recognition technology, for the consumer toindicate choices and provide information, and an electronic signaturepad to obtain the signature of the applicant indicating understandingand acceptance of the terms of the transaction.

In the example of a loan or credit card, an applicant applies via avariety of communication and electronic routes to make contact with thecomputer, which responds to the applicant and obtains information usingtouch-screen technology, in which the consumer applicant indicates achoice or supplies information by touching a computer monitor at thelocations provided, or voice recognition technology, where the consumersimply states a choice or other appropriate response recognizable to thecomputer controller. In the case of a touch screen monitor, the computercontroller can sense touching of the screen electronically anddetermines the location touched. Information about the applicant is alsoobtained via electronic transfer of data to the computer from one ormore databases, including those that provide name and address based on acaller's telephone number, and from credit bureaus that provide creditreports on an applicant given an applicant's name, a social securitynumber and an address.

In a preferred embodiment, the computer capability of the presentinvention also contains evaluation criteria in the form of underwritingmodels, that are used to "score" the application; that is, to make adetermination of whether to approve the application based on a computeranalysis of factors deemed important in assessing the would-beborrower's ability and willingness to repay the loan and to quantify therisk of its not being paid.

Finally, the loan agreement and other documentation, important forassuring that regulatory requirements have been met, are signed by theconsumer using the electronic signature pad, and copies of theagreements with the electronic signature set in place are printed outfor the consumer. The processing of the application is done completelyand automatically, without human intervention.

In a preferred embodiment, the user-interface is a kiosk housing acomputer controller, at least one telecommunications link, a monitor or"touch-screen" monitor, a camera to make a digital photograph of theapplicant, a bank card reader to identify an applicant and activate thecomputer controller, and means for electronically transferring thesignature and a photograph of the borrower onto the loan or credit cardagreement. The kiosk may be established at a convenient location, suchas an airport terminal, a bank, a shopping area or a store selling goodsthat might carry a price higher than a typical credit card limit, suchas a jewelry store or computer sales store, for example. The kiosk canenable the consumer to establish checking and savings accounts, applyfor and be immediately issued or sent credit and debit cards, establishand fund individual retirement accounts, obtain savings bonds andcertificates of deposit, arrange for automatic deposits to andwithdrawals from accounts, obtain cashier's checks, and order checks forchecking accounts.

An important feature of the present invention is the extent to which thefinancial transactions are processed by the computer controller andwithout human intervention. Computers are used to assist in processingapplications routinely, but the extent of use here significantly exceedsthat known in the art. Here, the processing by computer controllerincludes underwriting the application and deciding to make or deny theloan (or delay loan approval until more information is provided) orcredit, and the issuance of funds in the form of an electronic fundtransfer from a source of funds controlled by the computer controller orprinting of a check by the printer housed in the kiosk, or issuance of atransaction card, such as a credit, debit or "smart" card, imprintedwith the necessary information. The use of the computer to accesscertain information not within its own memory via telecommunicationslink also eliminates the need for human-based processing. Avoiding humanintervention not only saves processing time and reduces errors, but alsoeliminates bias in the decision to approve or deny the application.

The use of a kiosk to make available to borrowers the communicationscapability for applying for a loan or credit card is another importantfeature of the present invention. Kiosks, placed in convenientlocations, will contain electronic equipment that facilitates and speedsall of the steps of the application. Importantly, because funds aredeposited directly into the borrower's bank account rather thandispersed directly to the borrower from an automatic teller machine, theobtaining of funds from such a kiosk is safer than obtaining funds froma teller machine.

Yet another feature of the present invention is the use of an electronicsignature pad to obtain signatures of consumers for applications, forsignature specimens, for indicating an understanding ofregulatorily-required disclosures, and for consent to the variousfinancial services provided. Because signatures can be obtained andrecorded electronically, there is no need for the consumer to interactwith a financial representative handling paper documents, and,therefore, financial transactions can be done at any time of the day.Documents that are to be given to the consumer can be printed out by theprinter carried by the kiosk. In fact, the present invention greatlyreduces the need for financial institutions to maintain offices andmakes it more cost effective for them to provide kiosks in remote areasrather than branch offices.

Yet another feature of the present invention is the inclusion of acamera to make a digital photograph of the user for placing thephotograph on checks, credit cards and loan documents, to prevent fraudand deter theft.

The use of "touch screen" technology, another feature of the presentinvention, makes it easier, quicker and more reliable for the consumerto indicate a selection.

Other features and advantages will be apparent to those skilled in theart of automatic financial transactions from a careful reading of theDetailed Description of Preferred Embodiments accompanied by theDrawings.

BRIEF DESCRIPTION OF THE DRAWINGS

In the drawings,

FIG. 1 is a flow chart illustrating the menu of services and the majorsteps of an automatic financial lending system according to a preferredembodiment of the present invention;

FIG. 2 is a perspective view of the front of a kiosk according to apreferred embodiment of the present invention; and

FIG. 3 is an enlarged view of the kiosk of FIG. 2 according to apreferred embodiment of the present invention.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

The present invention is a method and apparatus for providing closedloop financial services. In a preferred embodiment, these servicesinclude those identified in FIG. 1: specifically, making loans, issuingchecks (such as cashiers' checks) certificates of deposit, treasurybills, mutual fund shares, issuing transaction cards, such ascredit/debit cards and so-called "smart" cards, and establishing newaccounts and depositing funds. The particular examples of loans andcredit cards will be described in detail. However, the other services,as will be described presently, can also be obtained in accordance witha preferred embodiment of the present invention.

The present invention includes making a loan or obtaining a transactioncard automatically, that is, a closed loop financial transaction. By theterm "automatically," it is meant that an application is received andprocessed, the decision to grant the loan or to issue the credit card,and the deposit of the loaned amount to the borrower's account, is madeentirely by computers in conjunction with voice and electroniccommunication equipment. Similarly, in the case of other financialtransactions, "automatically" also means each step is handled by thecomputer controller without human intervention, assistance ordecision-making.

The term "required documentation" or "documentation required byregulation" refers to documents required by the lender as part of goodfinancial institutional practice for meeting internal requirements andregulatory requirements. With regard to regulatory requirements inparticular, the regulations are Federal Reserve Board Regulations B (12CFR 202 et seq.) and Z (12 CFR 225 et seq) promulgated pursuant to TitleI of the Consumer Credit Protection Act (15 USC 1640 et seq.) and theFederal Truth In Lending Act (15 USC 1601 et seq.), respectively. Theseregulations prescribe the information to be given to a borrower orpotential borrower regarding the terms of the transaction and reasonsfor denial of credit. Financial institutions usually comply with theseregulatory requirements by providing the information to consumers inwriting and obtaining the consumer's signature that the information wasin fact provided and understood.

"Transaction cards," used in the context of financial tranactions, referto credit, debit, "smart", merchant, or credit identification cardscontaining information encoded in some way on the card, such asmagnetically.

FIG. 1 shows a flow diagram according to a preferred embodiment of thepresent invention. The user (sometimes referred to herein generally as"consumer" or "applicant" or "borrower" in the case of loanapplications) accesses the system by approaching a kiosk 40 (see FIGS. 2and 3) that has either voice recognition capability through a voicecommunication processor 30 or a monitor 50 with touch screen capability.Touch screen capability in monitors is well known. To indicate a choicepresented by a computer monitor having touch screen capability, the usersimply touches the screen at the location indicated. For example, imagesof a "yes" and a "no" button will appear and, by touching the "yes"button, the consumer indicates an affirmative answer to the questionpresented.

Use of voice communication processor 30 requires the consumer to statealoud a choice rather than point to one on monitor 40. This technologyis obviously more sophisticated than touch screen technology but is alsowell known in several other applications.

Touch screen monitor 50 or voice communication processor 30 enables theconsumer to "talk" to the transaction processor 10. By so communicating,information can be exchanged and the particular types of transactionsselected by the consumer can be completed. Importantly, the consumer isinteracting with transaction processor 10 without assistance fromemployees of the financial institution. Interacting with a transactionprocessor can be viewed as impersonal, but it can also be viewed as moreprivate and freer of bias.

Kiosk 40 is activated by drawing an ATM or bank card or equivalentthrough a magnetically encoded card reader 70 or by providing a membernumber for credit unions or a merchant number for merchants and financecompanies. The information encoded in the magnetic stripe on the back ofthe card is read by reader 70 and the information passed to transactionprocessor 10.

In a preferred embodiment, transaction processor 10 inquires of theconsumer as to the type of transaction desired and selects thecorresponding application or account information module, 130, 140,respectively, that then assists its informational gathering activities.If the consumer wishes to apply for a loan, credit or to set up a newaccount, application module 130 is activated to obtain the requisiteinformation from the consumer and comply with lending institution andregulatory requirements associated with the particular application. Ifthe consumer desires to withdraw or transfer funds or to make a purchaseor a deposit, transaction processor 10 will activate account informationmodule 140 to move funds from an account or from one source of funds toanother account or will issue a check from kiosk 40 to the merchant ordirectly to the consumer.

In either case, information must be exchanged with the user. Thisinformation comes in part from the consumer's physically indicated orspoken responses to inquiries and in part from a database 60 using theborrower's telephone number for identification. Transaction processor 10determines caller's name and address from database 60 based on thetelephone number of the consumer or, in a preferred embodiment, frominformation encoded magnetically on a bankcard used by the consumer toactivate kiosk 40. Other than confirmation that the consumer wants toapply for a loan (or, alternatively, to initiate one of the othertransactions possible), the amount desired, and the term, transactionprocessor 10 initially needs only the applicant's name, address andsocial security number for identification. This information is used toobtain a credit report from a credit bureau.

The applicant's credit report is obtained from the credit bureau bytransaction processor 10, evaluated using an underwriting model 90, tobe described more fully below, and a decision is made based on theresults of the evaluation by underwriting model 90, which results are inthe form of a score and an associated risk factor, to grant or deny theloan or credit card application. Transaction processor 10 informs theborrower of the decision and, if the application is granted, presentsthe terms of the financial transaction to the applicant via monitor 50.If the borrower accepts the terms of the loan or credit card, theborrower can sign the documents electronically using an electronicsignature pad 100 on kiosk. The same approach can be used to verify inwriting the fact that the borrower understood the terms of the loan orcredit card, as required by law, or, if the loan or credit card isdenied, that the borrower received a copy of the negative determinationletter with its explanation as to why the application was denied. Ineach case the consumer's signature on the documentation can be securedelectronically.

When transaction processor 10 has received the credit report, it sendsthe report electronically to underwriting model 90 (which could beinterfaced with a "neural network," a type of computer program thatadapts an underwriting model to lending experience) to begin theevaluation of the application. The evaluation may proceed by iteratingamong a set of criteria that are weighted. In the present application,one criterion that may be used in deciding to approve the application isthat the applicant have a full time job; this criterion may in fact havethe greatest weight. However, if the borrower owns a home and hasseveral bank accounts, criteria directed toward these assets mightoutweigh the lack of a job.

Analyzing the loan or credit card application involves determining ascore on which granting or denying the loan or credit card will bebased. A typical scoring system simply assigns points to various factorsthat may be considered in the loan or credit granting determination.Preferably, however, an underwriting model is used for scoring theapplication or at least for updating on a periodic basis the pointsapplied by a more traditional scoring system.

Underwriting model 90 is established by first identifying criteria thatmight have a bearing on the ability and willingness of the borrower torepay the loan or credit card. Then historical data is gathered todetermine the influence, or weight, to be given to each criterion. Thedata is examined and the initial set of weighting factors are applied todevelop estimates of the actual outcome of the data. The model'sestimates are compared to the actual outcome, and the weights areadjusted to make the estimates closer until the outcome predictions havebeen optimized. Underwriting model 90 uses information calculated fromthe credit report, such as the ratio of debt to liquidity. Anunderwriting model designer will also make a judgment on how fewcriteria are needed to make a sufficiently accurate prediction. Thereare commercially available computer programs, known to those skilled inthe art of computer decision-making, that can be used to developunderwriting models for the lending model upon entering the criteria andinitial weighting factors.

If the analysis of underwriting model 90 determines that the loan shouldbe made or the credit card issued, additional information is confirmedby transaction processor 10 from data obtained from database 60 or acredit bureau or is obtained from the borrower using transactionprocessor 10, namely, the borrower's deposit account number, thecaller's facsimile number, and the caller's acceptance of automaticwithdrawal. Then, the terms and conditions of the loan or credit cardmust be established in writing and the borrower's signature obtained.Obtaining the signature of the borrower can be accomplished using aninkless electronic signature pad 100 and electronic pen 105 that, whenthe borrower makes a signature while holding pen 105, recreates, throughdigital technology, the signature of the borrower on the signature lineof the documents displayed on the personal computer monitor.

A camera 110 carried by kiosk 40 can be used to take a photograph of theapplicant digitally. A digitally generated photograph of the applicantcan be placed on documents near the signature location. The signeddocumentation is printed using a facsimile or a laser printer (notshown) in kiosk 40. The documentation may include a copy of thedigitally-generated photograph next to the signature and is issuedthrough a printer port 120.

Transaction processor 10 then issues an electronic instruction to asource of funds such as lending institution (not shown) to transferelectronically the borrowed amount to the borrower's bank account at adeposit institution (not shown). Before the application is approved,however, there are several checks made by transaction processor 10 toprevent fraud. For example, the name of the applicant and theapplicant's signature is verified, both electronically. Informationobtained from the applicant including date of birth and the number ofyears with present employer, is compared to that available from a creditreport or other sources such as the national death and birth records,drivers' licenses, criminal records, etc.

In a preferred embodiment, part of the terms of the lending agreementinclude permission from the borrower for the lender to make anautomatic, periodic withdrawal from the borrower's bank account forrepaying the loan. The automatic direct deposit by electronic fundtransfer to and the automatic withdrawal of payment from the borrower'sdeposit account are especially important features of the presentinvention because they eliminate portions of the process from humancontrol and delays. Also, if the borrower has an immediate need for theloan, direct deposit will make these funds available as quickly aspossible, avoiding delays resulting from mailing, lost checks, the timetaken for a check to clear, and the need to go to the depositinstitution to make the deposit. Any documentation requiring theborrower's signature, including consumer lending disclosure information,will be handled as discussed previously.

No human needs to intercede. Transaction processor 10 communicates withthe borrower to extract information from data base 60 and a creditbureau; underwriting model 90 makes the decision to lend, andtransaction processor 10 obtains the signature of the borrower on thelending agreement using signature pad 100. Processor 10 effects theelectronic fund transfer and arranges for automatic withdrawal ofmonthly payments. Throughout the process, transaction processor 10 willinteract with the borrower using monitor 50 of kiosk 40 to prompt theborrower, who can indicate on the touch screen responses to processor 10for the latter to obtain the credit report and process the application.Loan or credit documentation can be stored electronically by processor10 in kiosk 40, or be transmitted by modem (not shown) within kiosk 40and connected electronically to transaction processor 10, printed usingan internal printer, and the copies of the forms issued through printerport 120.

As an example of the prompting that can be done, transaction processor10 can ask: "Are you currently employed? Press `yes`or `no.`", "How muchis your monthly income?", or "How much do you spend per month?" Thisinformation, provided by way of example, would be available from acredit report, but can be confirmed by prompting a response.Alternatively, if the information is asked and the responses, based on apartial analysis, indicate that the loan cannot be made or credit notextended, the applicant can be so informed by printing aregulatory-compliant credit denial letter, and the time, need and costof obtaining a credit report can be avoided. The answers to the promptscan be input by the borrower by using "touch screen" monitor 50 in kiosk40.

After approving the loan or credit card application, transactionprocessor 10 will review with the borrower the information relevant tothe loan or issuance of a credit card, such as the account number towhich the direct deposit will be made and the name of the depositinstitution, the account number and name of the automatic withdrawalinstitution, the date of the month and the first month the automaticwithdrawal will begin, the address and payee if the check is notintended for deposit into an account, late charges that could apply, thefinance charge, the annual percentage rate, the total cost of all thepayments, and the total amount financed. This information needed fromthe borrower regarding his or her accounts can be obtained bytransaction processor 10 after underwriting model has made thedetermination to make the loan or issue the credit card.

The preferred embodiment for enabling a borrower to complete a loan orcredit card application is housed in kiosk 40. FIGS. 2 and 3 depictkiosk 40 for use by an applicant in initiating an application. A kioskis basically a housing that can contain all of the equipment for aborrower to use in contacting and communicating with a remote, centrallylocated transaction processor 10, or, alternatively, kiosk 40 cancontain processor 10. Kiosk 40 includes monitor 50 with touch screencapability, a magnetic bank card reader 70 that enables a bank card tobe read to identify an applicant as well as the applicant's bank andcorresponding checking account, a magnetically encrypted card reader, aninternal printer with communications link (not shown in FIGS. 2 and 3)and, in a preferred embodiment, electronic signature pad 100 andassociated electronic pen 105 and a security camera 110. Signature pad100 is a surface that converts the motion of electronic pen 105 asborrower holds it and goes through the motions of making a signature toan electronic image of a signature and transfers it electronically totransaction processor 10. Camera 110 takes a digital photograph of theconsumer and transmits it to transaction processor 10 for application tochecks, credit or debit cards, so-called "smart" cards, and loandocuments. "Smart" cards are plastic cards with magnetically encodedinformation about the bearer of the cards, including such information asname, address, telephone number, social security number, any pertinentmedical data, next of kin, account information, and so on.

In use, an applicant will enter kiosk 40 and indicate using "touchscreen" monitor 50 his interest in a loan or any of the offeredfinancial services offered. He will be prompted by transaction processorvia monitor 50 to run a credit, debit, "smart", ATM or merchant cardthrough a card reader 70 to identify himself or, alternatively, maysimply enter sufficient other information to validate his identity.Transaction processor 10 will access one or more databases 60, such as acredit bureau, to obtain a credit report, to run a fraud analysis, forsignature verification, or to see if the consumer has written bad checksor the card is stolen. As before, the information obtained from theapplicant and from the credit report will be scored, preferably usingunderwriting model 90 to determine whether or not to approve theapplication. Whether approved or disapproved, the applicant will be soinformed and the loan or credit information or, if appropriate, aloan/credit denial letter provided. The signature of the applicant canbe obtained using electronic signature pad 100, and a signed copy of theagreement printed out through printer port 120 with a digitizedphotograph of the applicant. Meanwhile, the electronic transfer of fundswill have been arranged and communicated to applicant (or to a merchantor dealer selling the item purchased with the loan) as well as obtainingthe borrower's permission via a signed consent form done in similarfashion to have his deposit account automatically debited to repay theloan. All regulatory requirements will be met by presenting informationto the consumer via monitor 50 and obtaining concurrence ofunderstanding by a signature using signature pad 100.

As stated above, loans and credit cards are but one of many types ofservices that can be provided by a kiosk of the type described or withslight modifications. In fact, all the basic services provided byfinancial institutions --depositing and withdrawing money, transferringfunds from one account to another, establishing checking and savingsaccounts, arranging for automatic deposits to and withdrawals fromaccounts, applying for credit/debit/smart cards, establishing andfunding individual retirement accounts, purchasing certificates ofdeposit, savings bonds, and mutual fund shares, obtaining cashier'schecks, and ordering checks for checking accounts--can be done using thekiosk and computer controller of the present invention.

For example, and referring to FIG. 3, if a consumer has a checking orsavings account with a particular bank and desires a debit card, onethat enables him to debit such an account for purchases or to obtaincash, he can use the features of a kiosk 40, including a transactionprocessor 10 (see FIG. 1) and a touch screen monitor 50, its electronicsignature pad 100, credit card reader 70, document and check printer(not shown), printer port 120, and credit/debit card port 150. In aprocedure somewhat similar to applying for a loan, the consumer canapply for a credit card with a credit limit or a debit card that drawson his or her account. If, instead of a loan, the applicant wants a lineof credit or has an account with a bank, a credit or debit card,respectively, can be imprinted by transaction processor, including acopy of the digital photograph taken with camera 110 and issued fromkiosk 40 through credit card port 150 from a supply of cards kept withinkiosk 40.

In establishing a checking or savings account, the consumer can transferfunds from another account to set up the new account or feed in a checkto a scanner for deposit to the new account. Identifying the signaturespecimen can be obtained by the signing of electronic signature pad 100.Regulatory approvals can be obtained by first displaying documents onthe monitor screen, highlighting those requiring careful explanation andobtaining both the consumer's acknowledgment that they were explainedand that he understood them. Copies of the documents can be printed outfor the consumer to take with him by the printer carried in kiosk 40.

It will be apparent to those skilled in the art that many modificationsand substitutions may be made to the foregoing preferred embodimentwithout departing from the spirit and scope of the present inventionwhich is defined by the following claims.

What is claimed is:
 1. An automatic loan processing system providingreal time loan processing without human intervention for applicantslocated at a remote interface, said system comprising:a. a remoteapplicant interface adapted to:i. allow a loan applicant to remotelyrequest a loan from a financial institution; and ii. receive data fromthe loan applicant; b. a data processing system with associated memoryhaving weighted underwriting criteria bearing on the ability andwillingness of a borrower to repay a loan based on prescribed dataobtained from the borrower and information about the borrower obtainedfrom at least one database containing information about the borrowerrelevant to the ability and willingness of the borrower to repay a loan;c. a communication network electronically coupling said data processingsystem to said applicant interface; d. without human assistance, saiddata processing system adapted to:i. receive the data from the applicantreceived at the applicant interface; ii. access the at least onedatabase for information relevant to the loan applicant's ability andwillingness to repay the loan; iii. compare certain of the informationreceived from the loan applicant and certain of the information receivedfrom said at least one database relevant to the applicant's ability andwillingness to repay the loan with said weighted underwriting criteriato provide an underwriting score; iv. based on the underwriting score,determine in real time and without human assistance if the loanapplicant's requested loan is approved; and v. send a result to theremote applicant interface informing the loan applicant whether or notthe requested loan was approved.
 2. The automatic loan processing systemof claim 1 wherein said communication network is electronically coupledto a printer located in a place accessible to the applicant fordelivering loan documentation to the applicant.
 3. The automatic loanprocessing system of claim 1 wherein said data processing system isfurther adapted to effect an electronic funds transfer of an approvedloan amount from the financial institution's account to the applicant'saccount.
 4. The automatic loan processing system of claim 1 wherein saiddata processing system is further adapted to periodically effect anelectronic funds transfer of an approved payment amount from theapplicant's account to the financial institution's account for automaticrepayment.
 5. The automatic loan processing system of claim 1 whereinsaid applicant interface is a public kiosk having a data input means anddisplay.
 6. The automatic loan processing system of claim 1 furthercomprising a printer associated with and located at said remoteinterface, said central processing system cooperating with said remoteinterface and printer to print a check in an amount for at least aportion of the approved loan.
 7. The automatic loan processing system ofclaim 1 wherein said remote applicant interface includes a display andsaid data processing system is configured to transmit an image of a loanagreement to said remote applicant interface for display on saiddisplay.
 8. An automatic loan processing system providing real time loanprocessing without human intervention for applicants located at a remoteinterface, said system comprising:a. a remote applicant interfaceadapted to:i. allow a loan applicant to remotely request a loan; and ii.receive data from the loan applicant; b. a data processing system, withassociated memory having weighted underwriting criteria bearing on theability and willingness of a borrower to repay a loan based onprescribed data obtained from the borrower and information about theborrower from at least one database containing information about theborrower relevant to the ability and willingness of the borrower torepay a loan; c. a communication network electronically coupling saiddata processing system to said applicant interface; d. without humanassistance, said data processing system adapted to:i. receive the datafrom the applicant received at the applicant interface ii. access the atleast one database for information relevant to the applicant's identityand for information relevant to the applicant's ability and willingnessto repay the obligation; iii. verify the loan applicant's identity bycomparing certain of the information received from the applicant withcertain of the information received from said at least one databaserelevant to the applicant's identity; iv. compare certain of theinformation received from the applicant and certain of the informationreceived from said at least one database relevant to the applicant'sability and willingness to repay the credit obligation with saidweighted underwriting criteria to provide an underwriting score; v.based on the underwriting score, determine in real time and withouthuman assistance if the applicant's requested loan is approved; and vi.send a result to the remote applicant interface informing the loanapplicant whether or not the requested loan was approved.